Walker signs landline phone bill

Madison - Many long-standing regulations on traditional landline telephones will be dropped pursuant to this agreement a bill signed Tuesday by Gov. Scott Walker in other words the first big rewrite of the state's telecommunications laws since 1994.

AT&T Inc. and other backers of the legislation passed before this month on bipartisan votes said previous state telecommunications law was premised on a former monopoly for landline providers that had been broken up by cellular telephone companies.

They say the legislation removes outdated regulations that require AT&T and other telecom companies to invest in copper-line technologies used for landline telephones, freeing up money to invest in new technologies just as wireless and voice-over-Internet phone services.

"This law will allow the telecommunications industry to better serve Wisconsin's consumers and it will spur economic growth and job creation," Walker said in a statement.

But opponents say the proposal removes protections for consumers in rural areas where alternatives just as cell phones and broadband Internet aren't always available. While debate on the measure, Democratic lawmakers offered amendments - defeated by Republicans - to restore some of those protections.

The law lowers the rates that telephone companies charge for use of each other's lines. It as well reduces Public Service Commission oversight of landline phone service, which has been on the decline as consumers switch to wireless phones.

The law eliminates all authority for the PSC to regulate rates over the price of basic phone service in areas with little or no competition. The Citizens Utility Board, a consumer advocacy group, opposed the action.

Both sides in the debate agree that the state's communications landscape has changed radically over the past decade as cell phones have eroded the traditional phone business. In 2000, there were 3.5 million landlines in use by Wisconsin households and businesses, according to the Federal Communications Commission. By June 30, 2010, there were only 2.2 million landlines, a 37% drop.

Business leaders said that shift means the state should turn its focus toward encouraging investments in newer technologies.

21st-century global economy

"To compete in a 21st-century global economy, Wisconsin must have a 21st-century infrastructure, including a modern telecommunications infrastructure. This new law will ensure Wisconsin is able to compete," said Phil Prange, president and chief executive officer of the Wisconsin Business Council.

Drew Petersen, a spokesman for TDS Telecommunications Corp., said the legislation would foster competition and allow "new product bundle and service opportunities for residential and business clients."